Chapter 1

Question 1

1.
According to the American Marketing Association, which of the following is NOT a component of marketing?
◦
(a) Creating
◦
(b) Communicating
◦
(c) Delivering
◦
(d) Computing
◦
(e) Exchanging

Answer 1

(d) Computing

Question 2

Which of the following best describes the personal value equation?
◦
(a) value = benefits received + (price + hassle)
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(b) value = benefits received + price - hassle
◦
(c) value = benefits received - price + hassle
◦
(d) value = benefits received - (price + hassle)

Answer 2

(d) value = benefits received - (price + hassle)

Question 3

A company that believes the best way to compete is by reducing production costs is:
◦
(a) Market oriented
◦
(b) Production oriented
◦
(c) Selling oriented
◦
(d) Product oriented

Answer 3

(b) Production oriented

Question 4

Which era is characterized by heavy emphasis on advertising and selling?
◦
(a) Production era
◦
(b) Marketing era
◦
(c) Selling era
◦
(d) Value era

Answer 4

(c) Selling era

Question 5

.
Kraft Macaroni and Cheese was developed during the Great Depression as a:
◦
(a) Product-oriented offering
◦
(b) Value-based offer
◦
(c) Social marketing campaign
◦
(d) One-to-one marketing strategy

Answer 5

(b) Value-based offer

Question 6

The entire bundle of a tangible good, intangible service, and price is known as:
◦
(a) Marketing mix
◦
(b) Value proposition
◦
(c) Offering
◦
(d) Product orientation

Answer 6

(c) Offering

Question 7

In marketing, communicating involves:
◦
(a) Describing the offering to potential customers
◦
(b) Learning from customers
◦
(c) Educating potential customers about the value of an offering
◦
(d) Making customers aware of where they can find a product
◦
(e) All of the above

Answer 7

(e) All of the above

Question 8

9.
All the organizations that participate in the production, promotion and delivery of a product from the producer to the end consumer is:
◦
(a) Logistics
◦
(b) Supply chain
◦
(c) Exchange
◦
(d) Marketing plan

Answer 8

(b) Supply chain

Question 9

What is social marketing?
◦
(a) Marketing conducted by social media influencers
◦
(b) Promoting products through social media platforms
◦
(c) Marketing to achieve social change
◦
(d) Marketing for social events and gatherings

Answer 9

(c) Marketing to achieve social change

Question 10

11.
The idea that a company’s marketing efforts should improve the well-being of society is known as:
◦
(a) Marketing concept
◦
(b) Product orientation
◦
(c) Societal marketing orientation
◦
(d) Selling orientation

Answer 10

(c) Societal marketing orientation

Question 11

.
Engaging in practices that diminish the earth’s resources to the least extent possible is:
◦
(a) Social responsibility
◦
(b) Sustainability
◦
(c) Service-dominant logic
◦
(d) Ethics

Answer 11

(b) Sustainability

Question 12

1.
What is a value proposition?
a) A financial statement detailing a company’s assets.
b) A succinct statement of why consumers buy your brand.
c) A pricing strategy that maximizes profit.
d) An advertising slogan.

Answer 12

b) A succinct statement of why consumers buy your brand.

Question 13

.
What does positioning refer to in marketing?
a) The physical location of a product in a store.
b) The price point of a product relative to competitors.
c) How your offering’s product, price, promotion, and place compare to others in the marketplace.
d) The logistical placement of goods for efficient distribution.

Answer 13

c) How your offering’s product, price, promotion, and place compare to others in the marketplace.

Question 14

Segmentation is best described as:
a) Dividing people into groups based on shared characteristics.
b) Targeting all consumers with a single marketing message.
c) Positioning a product in the high-end market.
d) Ignoring customer differences to achieve economies of scale.

Answer 14

a) Dividing people into groups based on shared characteristics.

Question 15

.
What is a marketing plan?
a) A short-term sales forecast.
b) A document detailing a company’s financial performance.
c) A strategic plan at the functional level that provides a firm’s marketing group with direction.
d) An outline of the company’s production processes.

Answer 15

c) A strategic plan at the functional level that provides a firm’s marketing group with direction.

Question 16

5.
In the context of the marketing plan outline, what should the executive summary include?
a) Detailed financial projections.
b) A brief description of the market, product to be offered, value proposition, strategy behind the plan, key budget items, and other important information.
c) A comprehensive history of the company.
d) Legal disclaimers and terms of service.

Answer 16

b) A brief description of the market, product to be offered, value proposition, strategy behind the plan, key budget items, and other important information.

Question 17

6.
What is the purpose of a SWOT analysis in the context of a marketing plan?
a) To analyze social media trends.
b) To assess a company’s strengths and weaknesses relative to a market and offering.
c) To evaluate the supply chain.
d) To measure employee satisfaction.

Answer 17

b) To assess a company’s strengths and weaknesses relative to a market and offering.

Question 18

7.
What is market potential?
a) A company’s internal sales targets.
b) Total industry-wide sales expected in a particular product category for the time period of interest.
c) The estimated cost of entering a new market.
d) The potential for a company to expand internationally.

Answer 18

b) Total industry-wide sales expected in a particular product category for the time period of interest.

Question 19

What is sales potential?
a) Maximum total revenue a company hopes to generate from a product or the number of units of it the company can hope to sell.
b) The potential for a company to reduce its sales costs.
c) The total number of sales representatives a company can hire.
d) A measure of customer satisfaction with the sales process.

Answer 19

a) Maximum total revenue a company hopes to generate from a product or the number of units of it the company can hope to sell.

Question 20

9.
What is the sales force composite forecasting method?
a) A forecast based on estimates of sales in a given time period gathered from all of a firm’s salespeople.
b) A method of compensating sales teams based on performance.
c) A strategy for improving sales team morale.
d) A system for tracking sales data.

Answer 20

a) A forecast based on estimates of sales in a given time period gathered from all of a firm’s salespeople.

Question 21

In time series techniques, what is trend analysis?
a) Analyzing customer feedback to identify popular trends.
b) Identifying the rate at which a company’s sales have grown in the past and using that rate to estimate future sales.
c) Tracking the latest trends in social media.
d) Evaluating the performance of sales teams over time.

Answer 21

b) Identifying the rate at which a company’s sales have grown in the past and using that rate to estimate future sales.

Question 22

Why is accuracy important for forecasting?
a) To minimize marketing expenses.
b) To accurately set sales quotas.
c) If demand is overestimated, the company would unnecessarily spend money and if demand is underestimated, the company would not have enough supply, and other competitors will steal their sales.
d) To impress investors.

Answer 22

c) If demand is overestimated, the company would unnecessarily spend money and if demand is underestimated, the company would not have enough supply, and other competitors will steal their sales.

Question 23

What does a marketing audit involve?
a) A financial review of marketing expenses.
b) An examination or snapshot of the state of a company’s marketing strategies as they are actually implemented.
c) An assessment of employee satisfaction within the marketing department.
d) An analysis of social media engagement metrics.

Answer 23

b) An examination or snapshot of the state of a company’s marketing strategies as they are actually implemented.

Question 24

3.
What is brand equity?
a) The physical assets associated with a brand.
b) The legal protections afforded to a brand name.
c) The value of the brand.
d) The cost of creating a brand identity.

Answer 24

c) The value of the brand.

Question 25

What is market capitalization? a) A measure of a company’s profitability. b) Total stock of the world that is available to buy. c) The total value of a company’s assets. d) A calculation of marketing expenses.

Answer 25

b) Total stock of the world that is available to buy.

Question 26

What does analyzing the external environment involve? a) Assessing a company’s internal strengths and weaknesses. b) Tracking conditions in the macro and micro marketplace. c) Reviewing past marketing campaigns. d) Evaluating employee performance.

Answer 26

b) Tracking conditions in the macro and micro marketplace.

Question 27

What are the components of the macro environment? a) Competition, suppliers, and customers. b) Marketing intermediaries, the public, and the company. c) Economic factors, demographic trends, cultural/social trends, political/legal regulations, technological changes, price and availability of natural resources. d) Internal strengths, weaknesses, opportunities, and threats.

Answer 27

c) Economic factors, demographic trends, cultural/social trends, political/legal regulations, technological changes, price and availability of natural resources.

Question 28

What is the purpose of primary research? a) To analyze existing market reports. b) To gather original data through interviews and surveys. c) To review academic literature. d) To compile government statistics.

Answer 28

b) To gather original data through interviews and surveys.

Question 29

What is the focus of market penetration strategies? a) Entering new markets with existing products. b) Creating new products for existing customers. c) Increasing a firm’s sales of its existing products to its existing customers. d) Diversifying into unrelated industries.

Answer 29

c) Increasing a firm’s sales of its existing products to its existing customers.

Question 30

Market development strategies involve: a) Launching new products for existing customers. b) Enhancing the features of current products. c) Focusing on entering new markets with existing products. d) Improving customer service.

Answer 30

c) Focusing on entering new markets with existing products.

Question 31

What does a diversification strategy entail? a) Entering new markets with new products or doing something outside a firm’s current businesses. b) Focusing on a single product line. c) Targeting a specific customer segment. d) Streamlining operations to reduce costs.

Answer 31

a) Entering new markets with new products or doing something outside a firm’s current businesses.

Question 32

What are tactics in marketing? a) Long-term strategic goals. b) Specific actions, such as coupons, television commercials, banner ads, BOGO, etc. c) Broad marketing philosophies. d) Financial metrics for measuring success.

Answer 32

b) Specific actions, such as coupons, television commercials, banner ads, BOGO, etc.

Question 33

What is the BCG matrix used for? a) To analyze employee performance. b) To evaluate each of a firm’s strategic business units based on market growth rate and relative market share. c) To track customer satisfaction. d) To manage supply chain logistics.

Answer 33

b) To evaluate each of a firm’s strategic business units based on market growth rate and relative market share.

Question 34

3. In the BCG matrix, what is a "star"? a) A product with low growth and low market share. b) A product with low growth and high market share. c) A product with high growth and high market share. d) A product with high growth and low market share.

Answer 34

c) A product with high growth and high market share.

Question 35

. In the BCG matrix, what is a "cash cow"? a) A product with high growth and low market share. b) A product with low growth and a high market share. c) A product with high growth and high market share. d) A product with low growth and low market share.

Answer 35

b) A product with low growth and a high market share.

Question 36

. In the GE approach, what does a "green light" indicate? a) Harvest or divest products. b) Hold market share. c) Build market share; invest in new products, market, or technology. d) Reduce marketing expenses.

Answer 36

c) Build market share; invest in new products, market, or technology.

Question 37

What is the purpose of the PEST analysis? a) To evaluate a company’s internal strengths and weaknesses. b) To assess the political, economic, social, cultural, and technological factors in the business climate. c) To analyze competitive strategies. d) To measure customer satisfaction.

Answer 37

b) To assess the political, economic, social, cultural, and technological factors in the business climate.

Question 38

What is the meaning of Geodemographics? a) Plotting geographic marketing information on a map b) Segmenting buyers by the frequency that they use/buy products c) combines demographic and geographic information for marketing purposes d) Segmenting buyers by the benefits that they seek from the product

Answer 38

c) combines demographic and geographic information for marketing purposes

Question 39

Which of the following is NOT a stage in the buying process? a) Need recognition b) Search for Information c) Advertising d) Product Evaluation

Answer 39

c) Advertising

Question 40

Derived demand is best defined as: a) Occurs when demand for one product increases the demand for another b) A small change in demand by consumers can have a big effect throughout the chain of businesses that supply all the goods and services that produce it c) Demand that is derived from a source other than the primary buyer of a product d) A type of conditioning of consumer’s decisions

Answer 40

c) Demand that is derived from a source other than the primary buyer of a product

Question 41

What is Marketing Research? a) It is just a narrower activity b) Process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems to improve a company’s bottom line c) Measure the satisfaction of your channel partners d) None of the above

Answer 41

b) Process of collecting, analyzing, and reporting marketing information that can be used to answer questions or solve problems to improve a company’s bottom line

Question 42

. What is Reliability in the RATER model? a) Service provider’s ability to respond to consumes’ interests and desires b) Degree to which the consumer can trust the service provider to live up to promises c) Ability to deliver a specific level of quality over a number of trials d) Often signal consumers that they have received a high-quality service

Answer 42

c) Ability to deliver a specific level of quality over a number of trials

Question 43

Technology Platform can be defined as: a) A group of related offerings b) The core technology on which it is built c) How many offerings there are in a single product line d) None of the above

Answer 43

b) The core technology on which it is built

Question 44

. Why should market research be performed? a) Build it and they will come b) To avoid long-term strategic goals c) To prevent marketing to the mutual benefit of both parties d) Good marketing educates customers so that they can find the products they want, make better choices about those products, and extract the most value from them

Answer 44

d) Good marketing educates customers so that they can find the products they want, make better choices about those products, and extract the most value from them

Question 45

Which one is NOT one of the stages in the B2B buying process? a) A need is recognized b) Potential Suppliers are Searched For c) The proposals are evaluated and supplier(s) selected d) Customer’s intentions or estimates

Answer 45

d) Customer’s intentions or estimates

Question 46

Which is NOT the function packaging has to fulfill? a) Communicating the brand and its benefits b) Protecting the product from damage and contamination during shipment, as well as damage and tampering once it’s in retail outlets c) Preventing leakage of the contents d) Providing discount codes

Answer 46

d) Providing discount codes

Question 47

What are the four Ps of marketing? a) Product, Price, Place, and Production b) Product, Price, Place, and Promotion c) Production, Price, Place, and Promotion d) Product, Price, Place, and Payment

Answer 47

b) Product, Price, Place, and Promotion

Question 48

What are the three goals for understanding the customer in order? a) Understanding the customer’s wants and needs; how the customer wants to acquire, consume, and dispose of the offering; and what makes up their personal value equation b) Understanding the customer’s wants and needs; what makes up their personal value equation; and how the customer wants to acquire, consume, and dispose of the offering c) What makes up their personal value equation; how the customer wants to acquire, consume, and dispose of the offering; and understanding the customer’s wants and needs d) How the customer wants to acquire, consume, and dispose of the offering; understanding the customer’s wants and needs; and what makes up their personal value equation

Answer 48

a) Understanding the customer’s wants and needs; how the customer wants to acquire, consume, and dispose of the offering; and what makes up their personal value equation

Question 49

38. What does the personal value equation take into account? a) The standard measure of customer satisfaction b) That each person will like a dish more or less depending on their own personal tastes c) It is only the tangible good that the company provides d) The benefits an individual receives minus the price the consumer paid and the time and effort the person expended making the purchase

Answer 49

d) The benefits an individual receives minus the price the consumer paid and the time and effort the person expended making the purchase

Question 50

What is a company's offering? a) It is the total stock of the world that is available to buy b) The intangible service that the company provides c) The price that the company determines d) The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers

Answer 50

d) The entire bundle of a tangible good, intangible service, and price that composes what a company offers to customers

Question 51

. The way to compete is to build relationships with customers one at a time and seek to serve each customer’s needs individually is best known as? a) The exchange process b) Segmentation c) Building relationships with customers d) The Marketing Mix

Answer 51

c) Building relationships with customers

Question 52

. In the 3 C’s, which factor sets the floor? a) Customer Factors b) Competitor Factors c) Cost Factors d) All of the above

Answer 52

c) Cost Factors

Question 53

APPLICATION A local bakery is known for its high-quality ingredients and unique recipes. However, they are struggling to attract younger customers. Which of the following marketing mix adjustments would best address this issue? a. Lowering prices to match competitors. b. Launching a social media campaign showcasing the bakery's traditional baking methods. c. Introducing a line of trendy, Instagram-worthy pastries and promoting them through social media. d. Opening a second location in an older, more established neighbourhood.

Answer 53

c. Introducing a line of trendy, Instagram-worthy pastries and promoting them through social media.

Question 54

A non-profit organisation, the "Eco-Warriors," aims to promote responsible disposal of electronic waste. Which of the following strategies would be considered social marketing? a. Lobbying the government to pass stricter environmental regulations. b. Running a public awareness campaign on the dangers of improper e-waste disposal and providing convenient recycling drop-off locations. c. Partnering with electronics manufacturers to offer discounts on new products to customers who trade in their old devices. d. Organising community clean-up events to collect illegally dumped e-waste.

Answer 54

b. Running a public awareness campaign on the dangers of improper e-waste disposal and providing convenient recycling drop-off locations.

Question 55

3. A small, family-owned clothing boutique prides itself on providing personalised service and building relationships with its customers. However, they are facing increasing competition from large online retailers. Which of the following strategies would best leverage their strengths and differentiate them from competitors? a. Investing in a sophisticated e-commerce platform with advanced data analytics capabilities. b. Implementing a loyalty program that rewards repeat customers with exclusive discounts and personalised styling advice. c. Expanding their product line to include a wider variety of clothing styles and accessories. d. Launching a large-scale advertising campaign to increase brand awareness.

Answer 55

b. Implementing a loyalty program that rewards repeat customers with exclusive discounts and personalised styling advice.

Question 56

A tech start-up has developed a revolutionary new fitness tracker that offers advanced features and highly accurate data. However, they have a limited marketing budget. Which of the following communication strategies would be the most effective in reaching their target audience? a. Purchasing a Super Bowl commercial to generate mass awareness. b. Partnering with fitness influencers and bloggers to review the product and create engaging content. c. Placing print ads in health and fitness magazines. d. Sponsoring a local marathon to reach a targeted audience of runners.

Answer 56

b. Partnering with fitness influencers and bloggers to review the product and create engaging content.

Question 57

A major automobile manufacturer is facing criticism for its environmental impact and lack of transparency in its manufacturing processes. Which of the following actions would best demonstrate a commitment to social responsibility and improve its brand image? a. Launching a marketing campaign highlighting the fuel efficiency of its latest models. b. Investing in research and development of electric vehicles and implementing sustainable manufacturing practices. c. Sponsoring a charitable event to raise money for environmental causes. d. Issuing a press release acknowledging its past shortcomings and pledging to do better in the future.

Answer 57

b. Investing in research and development of electric vehicles and implementing sustainable manufacturing practices.

Question 58

A software company is preparing to launch a new version of its flagship product. Which of the following activities would be considered part of communicating the offering? a. Negotiating contracts with suppliers to secure the lowest possible production costs. b. Conducting market research to identify customer needs and preferences. c. Developing a pricing strategy that maximises profitability. d. Creating a series of online tutorials and webinars to educate customers about the new features and benefits of the software.

Answer 58

d. Creating a series of online tutorials and webinars to educate customers about the new features and benefits of the software.

Question 59

A restaurant wants to improve its personal value equation for its target customers. Which of the following actions would most likely achieve this goal? a. Increasing prices to reflect the rising cost of ingredients. b. Reducing portion sizes to minimise food waste. c. Offering a loyalty program that rewards frequent diners with discounts and exclusive perks. d. Cutting back on staff to reduce labour costs.

Answer 59

c. Offering a loyalty program that rewards frequent diners with discounts and exclusive perks.

Question 60

A retail company is considering expanding into a new international market. Which of the following factors should be considered when developing a global marketing strategy? a. The company's existing marketing plan and budget. b. The cultural, economic, and political differences between the home market and the new market. c. The availability of qualified marketing personnel in the new market. d. The company's production capacity and supply chain infrastructure.

Answer 60

b. The cultural, economic, and political differences between the home market and the new market.

Question 61

An online retailer is experiencing high rates of cart abandonment. Which of the following actions would be most likely to improve the exchange process and increase sales? a. Implementing a stricter return policy to reduce costs. b. Offering a wider variety of payment options and simplifying the checkout process. c. Increasing prices to improve profit margins. d. Reducing customer service hours to lower operating expenses.

Answer 61

b. Offering a wider variety of payment options and simplifying the checkout process.

Question 62

. An established brand of breakfast cereal wants to reposition itself to appeal to health-conscious consumers. Which of the following strategies would be most effective in achieving this goal? a. Launching a new advertising campaign that emphasises the cereal's traditional taste and nostalgic appeal. b. Reformulating the cereal to reduce sugar content and add more whole grains and fibre. c. Lowering the price to compete with generic brands. d. Discontinuing the cereal and launching a completely new product line.

Answer 62

b. Reformulating the cereal to reduce sugar content and add more whole grains and fibre.

Question 63

A company specialising in high-end luxury watches decides to release a new, more affordable line targeting younger consumers. This is an example of: a. Cannibalisation. b. A brand extension. c. A product mix contraction. d. Vertical integration.

Answer 63

b. A brand extension

Question 64

A local gym aims to attract more customers during off-peak hours. Which of the following strategies would be most effective in influencing the "time" situational factor? a. Redesigning the gym layout to improve the workout experience. b. Offering discounted membership rates for customers who sign up for off-peak hour sessions. c. Partnering with local businesses to offer exclusive deals to their employees. d. Implementing a stricter dress code to create a more professional atmosphere

Answer 64

b. Offering discounted membership rates for customers who sign up for off-peak hour sessions.

Question 65

A business-to-business (B2B) software company wants to expand its reach in a new international market. Which of the following is a key consideration for their global marketing strategy? a. Maintaining the same pricing strategy as in the domestic market. b. Understanding the local cultural and regulatory environment. c. Ignoring the competition to focus on their unique selling points. d. Using the same advertising campaigns as in the domestic market.

Answer 65

b. Understanding the local cultural and regulatory environment

Question 66

. A company is launching a new line of organic baby food. To build trust and credibility with parents, which element of the RATER model should they focus on? a. Tangibility, by using attractive packaging and displays. b. Responsiveness, by offering quick and helpful customer service. c. Assurance, by obtaining certifications and highlighting the expertise of their nutritionists. d. Empathy, by sponsoring parenting workshops and support groups.

Answer 66

c. Assurance, by obtaining certifications and highlighting the expertise of their nutritionists

Question 67

A mobile phone company decides to use "shock advertising" in its new campaign. What is the primary goal of this strategy? a. To promote the phone's features and specifications. b. To increase selective attention and improve information retention. c. To appeal to consumers' emotional needs and desires. d. To create a humorous and entertaining advertising message.

Answer 67

b. To increase selective attention and improve information retention

Question 68

. A company selling luxury handbags uses influencer marketing on social media. Which societal factor are they primarily trying to leverage? a. Family influences. b. Reference groups and opinion leaders. c. Social class divisions. d. Subcultural differences.

Answer 68

b. Reference groups and opinion leaders

Question 69

. A consumer consistently purchases the same brand of coffee without much thought or comparison shopping. This is an example of: a. Routine response behaviour. b. Extensive problem solving. c. Impulse buying. d. Limited problem solving.

Answer 69

a. Routine response behaviour

Question 70

A marketing team uses "geocoding" as part of its strategy. What kind of segmentation are they using? a. Demographic. b. Psychographic. c. Geographic. d. Behavioural.

Answer 70

c. Geographic

Question 71

A company reduces the price of its product during an economic recession. What situational factor are they responding to? a. Mood. b. Social situation. c. Time. d. Economic situation.

Answer 71

d. Economic situation

Question 72

A marketing manager gathers data on customer demographics, past purchases, and website activity to create targeted advertising campaigns. This is an example of using: a. Qualitative research. b. Ethnography. c. Big data. d. Projective techniques.

Answer 72

c. Big data